9559179325 9559179325 Login
Eligibility Criteria for GST Registration - BizAdvisors

Learning

A Complete Overview of Eligibility Criteria for GST Registration

A Complete Overview of Eligibility Criteria for GST Registration

The Goods and Services Tax, abbreviated as GST, is an indirect tax levied on services that are paid when purchasing goods or services. Furthermore, businesses that sell goods and provide services must pay their fair share of GST. GST combines several different central and state indirect taxes, generating additional revenue for the government while avoiding the cascading effect of indirect taxes. Similarly, GST Registration went into effect in April 2017, and all qualifying businesses were required to register under the new regime. GST stands for Value-added Tax, and it is a single indirect tax imposed on the manufacture, sale, import, and consumption of goods and services in India. It replaced 15 indirect taxes in total (both state & Central). Online GST Registration in India is a simple and entirely online process. In this blog, we will go over the Eligibility Criteria for GST Registration.

Checklist for GST Registration

GST registration numbers are PAN-based, so a PAN is required to register. Within thirty days of becoming liable to registration, every individual must apply for registration in each state in which he is liable. Because registration for GST is done on a state-by-state basis, the assessed must obtain separate registration for each state. Furthermore, the assessed may obtain separate registration in the same State for each of his “business verticals.” Casual/non-resident taxpayers must apply at least five days before the beginning of their business. The checklist should be followed by all the people who come under the Eligibility Criteria for GST Registration. 

Understanding the Eligibility Criteria for GST Registration

These automatically fall under the category of Eligibility Criteria for GST Registration; 

  • Businesses that provide goods and services across state lines
  • Non-resident taxable individual
  • Taxpayer on the side
  • Under the reverse charge mechanism, taxpayers
  • Businesses registered under old tax services such as VAT, excise, and service tax Any business engaged in the supply of goods whose turnover in a fiscal year exceeds 40 lakhs for states in the Normal Category that have opted for the new threshold (20 lakhs for special category states and those in states that have not opted for the new threshold, such as Telangana). 
  • Any business engaged in the provision of services whose annual revenue exceeds 20 lakhs in normal category states (and 10 lakhs in special category states)
  • Supplier’s agents
  • Distributors of input services
  • Businesses that provide online information, database access, and/or retrieval services from outside India to an individual or business within India.
  • Aggregators of e-commerce
  • Companies that sell through an e-commerce aggregator
  • Other individuals and businesses as notified by the central/state governments, based on the GST Council’s recommendation.

Eligibility Criteria of GST Registration 

According to Section 22 of the CGST Act of 2017 the following individuals are eligible for GST registration:

  • Supplier engaged in the exclusive supply of goods with an annual turnover in excess of 40 lakh rupees.
  • In the case of special category states, suppliers engaged in providing taxable supplies of goods must register for GST[1] if their aggregate turnover exceeds 20/10 lakh rupees in a fiscal year.
  • The supplier who provides taxable services if the aggregate turnover exceeds 20 lakh rupees in a fiscal year.
  • Supplier engaged in providing a taxable supply of services in a special category state if aggregate turnover exceeds 10 lakh rupees in a fiscal year.
  • In the case of a special category state, the supplier engaged in providing taxable services. Persons who are registered under the previous law on the day before the appointment date.
  • If a registered taxable person transfers a business to another person on a going concern basis, whether through succession or otherwise, the transferee or successor must obtain registration.

Section 24 of the CGST Act of 2017 requires the following individuals to obtain mandatory GST registration:

  • Person engaged in the interstate taxable supply of goods and/or services.
  • Persons liable to pay tax under the reverse charge mechanism; Casual taxable persons engaged in taxable supply.
  • Non-resident taxable person making taxable supplies.
  • Person required to pay tax pursuant to Section 9(5) of the Act; Person required to deduct tax at source; Input Service Distributor; E-commerce operator.
  • Person supplying goods or services, or both, via an e-commerce operator who is required to collect tax at the point of sale.
  • Unregistered individuals who provide online information and database access or retrieval services from outside India.

Conclusion 

All the people coming under the Eligibility Criteria of GST Registration as discussed above has to adhere to all the laws of GST Registration. Registration under GST would provide you with the following advantages: you would be legally recognized as a supplier of goods or services. Proper accounting of taxes paid on input goods or services that can be used for GST payment due on the business’s supply of goods or services, or both.  Legally authorized to collect taxes from his customers and pass on tax credits paid on goods or services to customers or recipients. According to the GST Act, anyone who is required to register for GST but fails to do so or registers late will be subject to a penalty. A regular taxpayer’s Normal GST registration certificate does not have a validity period and will not expire unless canceled. However, when casual taxable persons and non-resident taxable persons register for GST, the GST certificate is issued temporarily with an expiry date. For more details on the Eligibility Criteria of GST Registration, you may contact at BizAdvisors.io.

Read our article:GST on Legal Services in India: Applicability & GST Rate

Post Views:

982

Related Posts

Leave a Reply

Categories

Get Expert Assistance


Subscribe Our Newsletter.

We'll never share your email with anyone else.